ii view: Standard Chartered goes from strength to strength

A pedestrian looks at his smartphone while walking past a Standard Chartered bank branch in Hong Kong. Photo: Cheng Xin/Getty Images.

First-half results to 30 June

• Operating income up 6% to $11.6 billion (£8.47 billion)
• Pre-tax profit up 9% to $4.78 billion
• Credit impairment charges up 33% to $446 million
• Capital cushion, or CET1 ratio of 14.2%, up from 14.1%
• Interim dividend up 66% 20.4 US cents per share
• New $1 billion share buyback

Guidance:

• Now expects full-year currency adjusted operating income growth around the middle of a 5% to 7% range, up from a previous bottom end forecast

Chief executive Bill Winters said:

"We delivered a record first half performance in 2026, with double-digit growth in Wealth Solutions and Global Banking. Our performance demonstrates the strength of our differentiated international network and the disciplined execution of our strategy.

“Clients continue to turn to us to facilitate trade, investment and wealth flows across the world's most dynamic markets.”

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ii round-up:

Headquartered in the UK, Standard Chartered (LSE:STAN) operates across 50 plus countries, primarily in Asia, Africa, and the Middle East.

The Corporate and Investment banking division generated 62% of pre-tax profits during this latest half year.

The Wealth and Retailing division, helping personal or retail customers, accounted for the balance of 38%, with its Ventures division, funding innovative new financial business models through technology partnerships, reporting a small loss.

For a round-up of these latest results announced on 29 July, please click here.

ii view:

Started in 1853, the FTSE 100 company today employs around 81,000 people. Geographically, Hong Kong generated most income during H1 2026 at just over a quarter. That was followed by Singapore at 14%, the UK 11%, India 7%, and Korea, UAE and China all at around 5-6%.

Management continues to expect client activity to be shaped by structural shifts in the global economy including a more multi-aligned world, the increasing digitisation of money, and rising wealth participation across markets.

For investors, a credit impairment charge up by a third now looks to cover default risk in the UAE and other interests in Qatar and Saudi Arabia. Elevated fuel costs in the wake of the Middle East war and rising inflation may now slow global economic activity more widely, denting future loan demand. Other geopolitical risks include exposure to Hong Kong and China, with US threats to extend sanctions on Iran to trading partners such as China not to be ignored. A forecast price/earnings (PE) ratio above the three-year average may also suggest the shares are not obviously cheap.  

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More favourably, management’s ongoing focus on improved efficiency has seen key performance indicators move in the right direction. A diversity of geographical regions and business types exist including exposure to investment banking that had been exited by many UK peers following the financial crisis. Total customer accounts rose 4% during this latest period to 552,644, while a capital cushion, or CET1 ratio of 14.2% is above the group’s target range of 13-14%, pointing to a robust balance sheet.

In all, and while raised global geopolitical tensions generate room for caution, a forecast dividend yield of around 2.5% is likely to generate support for this popular Asia-focused bank.

Positives:

• Both business type and geographical diversity
• Previous takeover approach

Negatives:

• Concerns for China’s economy
• Global geopolitical tensions

The average rating of stock market analysts:

Strong hold